Efforts are underway to resolve the long-standing dispute between the Nepal Electricity Authority (NEA) and defaulting industries over unpaid dues related to dedicated feeder and trunk line electricity services.
To end the standoff, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) came up with a proposal during a meeting with Prime Minister Sushila Karki, ministers and senior officials on Monday.
FNCCI President Chandra Prasad Dhakal suggested that industries pay the first installment of the disputed dues as a form of security deposit. In return, NEA would immediately restore electricity supply to industries whose power has been disconnected.
Earlier, NEA had given industries until October 19 to clear the dues in 28 installments. While some industries paid the first installment within the deadline, many others with substantial outstanding amounts did not. As a result, NEA disconnected electricity to 25 industries nearly two weeks ago. According to NEA, these industries collectively owe Rs 5.48 billion to the state-owned power utility.
NEA Executive Director Manoj Silwal confirmed that electricity has already been reconnected to six industries; Gharana Foods, Goenka Foods, Panchakanya Plastic Industries, Panchakanya Steel Industries, Siddhartha Pet Plant and Shyam Plastic, after they cleared their first installment.
Industrial production has come to a halt in affected factories due to the power cut, raising concerns over job losses among workers. In response, FNCCI, as the umbrella body for businesses, has stepped in to mediate and facilitate a resolution.
Dhakal told New Business Age that the proposal aims to pursue a middle path: industries would deposit the first installment as a guarantee, power would be restored immediately, and legal or regulatory review of the disputed dues could continue in parallel. He added that the government responded positively to the proposal.
He further clarified that the proposal was made based on individual feedback from industrial representatives. While not all affected industry promoters attended the meeting, those present agreed that the dues could be treated as disputed and pursued through judicial channels, while ensuring immediate operational relief.
NEA’s Position
NEA Executive Director Manoj Silwal clarified that the authority will accept payments strictly as installments toward the dues, not as a security deposit. He said industries may consider the amount disputed, but NEA will treat it as settlement of installments.
“If, in the future, the court or the Electricity Regulatory Commission orders the refund of the amount, we will comply,” Silwal said. He added that electricity supply will be restored the same day an industry pays its installment.
However, Silwal stated that an internal review within the NEA is currently not possible. The NEA Board of Directors, chaired by the Energy Minister, has already dissolved the review committee.
In its statement released Monday, FNCCI noted that industries can submit payment to NEA while also formally recording their disagreement, and may seek review or further legal remedies as needed.
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